Guess the European country that had an excellent year for commercial RE
Property investment in Spain has finally recovered from the financial crisis
For Spain, the future post-crash finally began this year as commercial real estate investment reached comparable pre-2007 levels to the tune of an estimated 8.9 billion euros, according to Savills.
With the economy slated to grow 3.1 percent by the time Spaniards ring in the new year and growth for 2018 pegged at 2.5 percent, Bloomberg reports that 2017 was the country’s year, despite political upheaval around the Catalan secession movement.
“The Spanish economy is doing well, its banks are healthy, there’s a very investor-friendly legal framework and property is still cheap compared to other European cities,” said Merlin Properties Socimi’s founder Ismael Clemente. “It’s all come together.”
The majority of the real estate investment comes from foreign buyers who account for approximately two-thirds of investors, according to Savills. Retail properties were the most popular buy, an understandable figure considering Spanish shopping malls offer owners the best yields in comparison to cities like Frankfurt or Paris.
“Rents are rising and so is occupancy, and that’s what’s motivating investors,” said Savills’ Luis Espadas, head of capital markets at the firm office in Madrid.
[Bloomberg] — Erin Hudson